Sundance Back in Talks With Investors After Hanlong FailureElisabeth Behrmann
Sundance Resources Ltd., the iron ore developer that last month scrapped a deal to be bought by Sichuan Hanlong Group, has begun talks with potential partners about investing in its $4.7 billion Mbalam project.
“These groups come from a range of countries and have widely diversified interests in areas such as resource projects, infrastructure provision and steelmaking,” Perth-based Sundance said today in a statement. “They have also expressed a range of views about how it would be possible to structure transactions which bring them into the” Mbalam project.
Sundance in April terminated a A$1.14 billion ($1.1 billion) takeover accord after Hanlong was unable to secure funding for its African iron ore project, adding it was in talks with other groups about selling stakes in the project. The collapse of the deal, first agreed in October 2011, came after Hanlong’s billionaire Chairman Liu Han was reported to have been detained in March by police in China.
“While some of these talks are more advanced than others, all current discussions remain incomplete and confidential,” Sundance said. Discussions include port and rail solutions, as well as direct investment in the iron ore project, which straddles Cameroon and Republic of Congo.
Sundance gained 24 percent to 9.9 cents a share at the close of trading in Sydney, giving it a market value of A$304 million. Its shares have declined about 76 percent over the past year.